“Lori’s situation has gone from bad to worse. Jail time has always been a possibility, but since more charges were filed her reality [of not serving time] seems grim,” a source close to the 54-year-old former “When Calls the Heart” star told Entertainment Tonight. “While the fact she could serve time never leaves her mind, she strongly believes she doesn’t deserve to. She truly feels it was all a misunderstanding.”

The source claims that Loughlin still insists that the entire alleged scam was a misunderstanding, but that Olivia, who reportedly felt that her life was “ruined” by the scandal and moved out of her family’s home, isn’t buying what her mother is selling.

“Olivia Jade is totally over it and won’t listen to anything her parents say now. She is in no way ready to forgive anything her parents have done,” the source said. “Lori doesn’t understand Olivia’s reaction. She seems to feel her act was selfless and misunderstood and she wants to prove she had all the best intentions and even that she was, in some way, duped into breaking the law.”

The source added that Loughlin and Olivia Jade went to therapy, but that it hasn’t helped.